Crude Oil Price Forecast – crude oil continues to break downCrude oil markets continue to drop during the trading session on Tuesday and has broken through rather significant support. At this point, it looks like the great unwind is continuing.
WTI Crude Oil
The WTI Crude Oil market initially when sideways during the session on Tuesday, but then broke down below the $68 level to show even further weakness. WTI Crude Oil market continues to show signs of exhaustion every time we rally, and most certainly there is far too much in the way of bearish pressure to think that we are going to go much higher. Overall, I think that the market will probably go looking towards the $65 level, and I believe that the $70 level above will offer a significant amount of resistance. If we break down below the $65 level, the market could unwind even further. With Saudi Arabia releasing more crude oil, and the US dollar strengthening, this is a perfect storm for this market to continue to struggle.
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Just like the WTI market, Brent markets broke down during the session on Monday, but even more importantly than following the WTI market, Brent has broken down through a major uptrend line. We are currently hovering around the $72 level, an area that of course has a certain amount of psychological importance, but if we can break down below the $71.50 level, we will probably go down to the $70 handle next. Out of the two markets, the Brent market certainly seems to be much more susceptible to the bearish pressure around the world when it comes to oil, so I think at this point if this market starts to break down, we could have an excellent opportunity to short WTI Crude Oil as it would have to play “catch-up” to this market.